25 Years of Service Desk KPI's: Past and Present Metrics

Past and Present
25 Years of Service Desk KPI’s
Jeff Rumburg

Your Speaker: Jeff Rumburg
© 2015 MetricNet, LLC, www.metricnet.com
 Co Founder and Managing Partner,
MetricNet, LLC
 Winner of the 2014 Ron Muns
Lifetime Achievement Award
 Former CEO, The Verity Group
 Former Vice President, Gartner
 Founder of the Service Desk
Benchmarking Consortium
 Author of A Hands-On Guide to
Competitive Benchmarking
 Harvard MBA, Stanford MS
2

27 Years of IT Service and Support Benchmarking Data
More than 3,000 IT Service and Support Benchmarks
Global Database
70+ Key Performance Indicators
More than 120 Industry Best Practices
3© 2015 MetricNet, LLC, www.metricnet.com

The Premise Behind Service Desk KPI’s
We’ve all heard the expression…
“If you’re not measuring it, you’re
not managing it!”
But there’s more to the story…Lots more!

Business
Effectiveness
ROI
5
Service Desk KPI’s Through the Decades
1970’s 1980’s 1990’s 2000’s 2010-
2015
2015 &
Beyond
Bag & Tag
Log &
Dispatch
Service Levels
The Rise of
Quality
Metrics
Renaissance
Cause & Effect
Process
Metrics
TCO
Service and
Support as a
Business
Discipline

6
1970’s: Metrics…What Metrics?

7
1980’s: Service Levels, Quality and AHT
Service LevelQuality
 Average Speed of
Answer (ASA)
 Call Abandonment Rate
 Customer Satisfaction
 Call Quality
Call Handling
 Average Call Handle
Time

ASA Drives Cost per Contact
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
0 50 100 150 200 250
Average Speed of Answer (sec)
CostperContact

Call Abandonment Rate Also Drives Cost per Contact
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
Call Abandonment Rate
CostperContact

ASA vs. Customer Satisfaction
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
0 5% 10% 15% 20%
ASA as a % of Total Handle Time
CustomerSatisfaction

Call Abandonment Rate vs. Customer Satisfaction
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Call Abandonment Rate

1990’s: A Metrics Renaissance
 Cost per Contact
 Cost per Minute of Handle
Time
Cost Productivity
Service Level
Quality
Call HandlingAgent
 Average speed of answer
(ASA)
 Call abandonment rate
 % Answered within 30
Seconds
 Average hold time
 Average time to abandon
 Percent of calls blocked
 Contacts per Agent per
Month
 Agent Utilization
 Agents as % of Total
Service Desk Headcount
 Call Quality
 First Contact Resolution
Rate
 Agent Occupancy
 Schedule Adherence
 Annual Agent Turnover
 Daily Absenteeism
 New Agent Training Hours
 Annual Agent Training
Hours
 Agent Tenure
 Agent Job Satisfaction
 Average Handle Time
 User Self-Help Rate
 IVR completion Rate
 Percent of calls
transferred

Widespread Reporting, Tracking, and Trending
80%
65%
$17.00
AGENT UTILIZATION
J F M A M J J A
FIRST CONTACT RESOLUTION
J F M A M J J A
COST PER CONTACT
J F M A M J J A
CUSTOMER SATISFACTION
J F M A M J J A
5%
80%
90%
CALL ABANDONMENT
J F M A M J J A
BALANCED SCORE
J F M A M J J A
COST PER CONTACT CUSTOMER SATISFACTION
FIRST CALL RESOLUTION RATEAGENT UTILIZATION
AGENT SATISFACTION CALL ABANDONMENT RATE

Agent Utilization Drives Cost per Contact
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
20% 30% 40% 50% 60% 70% 80%
Agent Utilization
CostperContact

First Contact Resolution Drives Customer Satisfaction
20%
40%
60%
80%
100%
20% 40% 60% 80% 100%
First Contact Resolution

New Agent Training Hours vs. First Contact Resolution
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 50 100 150 200 250 300 350
New Agent Training Hours
FirstContactResolutionRate

Annual Agent Training vs. First Contact Resolution
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 20 40 60 80 100 120 140
Annual Agent Training Hours
FirstContactResolutionRate

Service Desk KPI’s: Cause-and-Effect
Cost/Contact Customer Satisfaction
Agent
Utilization
First
Contact
Resolution
Agent
Satisfaction
Coaching Career Path Training Hours
Call
Quality
Handle
Time
Agents/
Total FTE’s
Absenteeism/
Turnover
First Level
Resolution
Scheduling
Efficiency
Service Levels:
ASA and AR

The Dilemma with Metrics in the 1990’s
Lots and Lots of Data
 But not enough analysis…
 Not enough Insight…
 And not enough Action!!

The 2000’s: The Holistic Use of KPI’s
The Historical Approach The Holistic Approach
Measurement
(75%)
Analysis
(15%)
Prescription
(7.5%)
Action
(2.5%)
Measurement
(5%)
Analysis
(20%)
Prescription
(30%)
Action
(45%)
IncreasingValue!

Unleashing the Enormous Power of Service Desk KPI’s
The Central Question of the Early 2000’s…
How do we turn Service Desk KPI’s
into a Competitive Advantage?
Better…Faster…Cheaper!

The World-Class Service Desk Defined
 Service Desk consistently exceeds customer expectations
 Result is high levels of customer satisfaction
 Call quality is consistently high
 Costs are managed at or below industry average levels
 Cost per contact below average
 Minimizes Total Cost of Ownership (TCO)
 Service Desk follows industry best practices
 Industry best practices are defined and documented
 Service Desk follows industry best practices
 Every transaction adds value
 A positive customer experience
 Drives a positive view of IT overall

Cost per Contact HigherLower
Higher
A World-Class Service Desk
An “Average” Service Desk
BEST-IN-CLASS
PERFORMANCE CURVE
AVERAGE PERFORMANCE CURVE
The World-Class Service Desk Defined

24
Performance of
Benchmarking Peer
Group
Determine How
Best in Class
Achieve Superiority
Adopt Selected
Practices of
Best in Class
Build a Sustainable
Competitive
Advantage
The ultimate
objective of
benchmarking
The Widespread Adoption of Benchmarking
COMPARE
Capital Group
Desktop Support
Performance

The Goal of Benchmarking
Cost per Ticket HigherLower
Higher
BEST-IN-CLASS
PERFORMANCE CURVE
AVERAGE PERFORMANCE CURVE
AFTER BENCHMARKING
STARTING POINT: BEFORE
BENCHMARKING

The 80/20 Rule for Service Desk KPI’s
 Cost per ContactCost
Productivity
Quality
Call Handling
 Agent Utilization
 First Contact Resolution Rate
Agent  Agent Job Satisfaction
Read MetricNet’s whitepaper on Service Desk Performance Metrics. Go to www.metricnet.com to get your copy!
Aggregate  Balanced Scorecard
TCO  First Level Resolution Rate

Cost of Resolution: North American Averages
Support Level Cost per Ticket
Vendor
Level 2: Desktop Support
Field Support
Level 3 IT
(apps, networking, NOC, etc.)
Level 1: Service Desk
$471
$196
$85
$62
$22

Shift Left Reduces Total Cost of Ownership

Aggregate Metrics: The Balanced Scorecard
Step 1
Six critical
performance
metrics have been
selected for the
scorecard
Step 2
Each metric has been
weighted according to its
relative importance
Step 3
For each performance metric,
the highest and lowest
performance levels in the
benchmark are recorded
Step 4
Your actual
performance for
each metric is
recorded in this
column
Step 5
Your score for each
metric is then calculated:
(worst case – actual
performance) / (worst
case – best case) X 100
Step 6
Your balanced score for each
metric is calculated: metric
score X weighting
29
Worst Case Best Case
Cost per Contact 25.0% $55.28 $9.15 $21.83 72.5% 18.1%
Customer Satisfaction 25.0% 63.7% 97.5% 77.2% 39.9% 10.0%
Agent Utilization 15.0% 30.9% 64.4% 47.0% 48.0% 7.2%
Net First Contact Resolution Rate 15.0% 51.8% 87.5% 70.2% 51.4% 7.7%
Agent Job Satisfaction 10.0% 53.5% 91.5% 73.4% 52.4% 5.2%
Average Speed of Answer 10.0% 192 13 60 73.5% 7.3%
Total 100.0% N/A N/A N/A N/A 55.6%
Performance RangeMetric
WeightingPerformance Metric
Balanced
Score
Your
Performance
Metric
Score

Benchmarking Your Overall Performance
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
BalancedScores
High 86.5%
Average ----- 50.3%
Median 50.3%
Low 13.8%
Your Score 55.6%
Balanced Scores
Key Statistics

The Service Desk Performance Trend
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
ServiceDeskBalancedScore
12 Month Average Monthly Score

2010 – 2015: Metrics as a Foundation Block
METRICS
PEOPLE
PROCESS
TECH

10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 2 3 4 5
Metrics Maturity Ranking
DesktopSupportBalancedScore
The Evidence for Metrics as a Foundation Block
n = 143
ServiceDeskBalancedScorecard

KPI’s for The Emergence of Lower Cost Channels
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
6 Months 1 Year 2 Years 3 Years 5 Years
Time from Implementation
%ofAllContacts
% Live Agent
% Email
% IVR
% Web Chat
% Web Self-Service

35
The Paradox of IT Support
 Less than 5% of all IT spending is
allocated to end-user support
 Service desk, desktop support,
field support
 This leads many to erroneously
assume that there is little upside
opportunity in IT support
 The result is that most support
organizations are managed with the
goal of minimizing costs
 But the most effective support
strategies focus on maximizing
value
Corporate IT Spending Breakdown
4%
96%: Non support functions
End-User Support
 Application
Development
 Application
Maintenance
 Network
Operations
 Mainframe and
midrange Computing
 Desktop Computing
 Contract Services
(e.g., disaster
recovery)

The First ROI Methodology Published
ROI =
Return
Investment
=
Savings
Spending
 ROI is a simple ratio
 It requires quantification of Return (Savings), and Investment
(Spending)
 It is measured over a one-year timeframe (One Year ROI is
implied in the metric)
 It is one of the most widely used and accepted financial metrics
 It can be used prospectively, as part of a Business Case
Analysis
 …Or retrospectively to evaluate the past business success

37
The Emergence of Service Desk as a Value Center
 Responsible for cost control
 Not responsible for…
 Revenue generation
 Profits
 Investment decisions
Cost Center Value Center
VS.
 Creates value
 Demonstrates value
 Cost savings
 Cost Benefit Analysis
 ROI Analysis
 The vast majority of service and support organizations operate as cost centers
 They are expected to control costs, but are not expected to make any explicit financial
contribution to the enterprise
 The focus in a cost center is on minimizing costs
 The focus in a Value Center is on maximizing value!
 The industry megatrend now is on creating and demonstrating economic value

Exploit Value
Metrics Focused
Proactive
Marketing
2015 and Beyond: Service and Support as a Business

Shift Left Reduces Total Cost of Ownership

40
0
10
20
30
40
50
60
70
0 1 2 3 4 5
ProductiveHoursLostperEmployeeperYear
Quality of Support Drives End-User Productivity
1 (top) 2 3 4 (bottom)
Customer Satisfaction 93.5% 84.5% 76.1% 69.3%
First Contact Resolution Rate 90.1% 83.0% 72.7% 66.4%
Mean Time to Resolve (hours) 0.8 1.2 3.6 5.0
Customer Satisfaction 94.4% 89.2% 79.0% 71.7%
First Contact Resolution Rate 89.3% 85.6% 80.9% 74.5%
Mean Time to Resolve (hours) 2.9 4.8 9.4 12.3
Service Desk
Desktop Support
Performance Quartile
Support Function Key Performance Indicator
37.4 46.9Average Productive Hours Lost per Employee per Year 17.1 25.9
Performance Quartile n = 60

A Proactive Culture Aided by Metrics
Some Common Proactive Behaviors
 Root Cause Analysis / Closed Ticket Analysis
 Marketing / Brand Management
 Business Case Analysis for New Investments
 Benchmarking
 Goal-based Training
 Cause-and-Effect Decision-making
 Manage Agent Morale / Agent Job Satisfaction
 Agent Scorecards

The Role of Marketing in IT Support
We’ve all heard the expression…
“Expectations Not Set…
are Expectations Not Met!
So, let’s get serious about proactively managing
expectations!

Perception vs. Reality in IT Support
LOWER COST HIGHERACTUAL VALUE
PERCEIVED
VALUE
HIGHER
LOWER
Perceived Value > Actual Value
Perceived Value < Actual Value

Perception Is Almost Always Worse Than the Reality
PERCEIVED
VALUE
HIGHER
LOWER
A Common (but
Dangerous) Operating
Position

Brand Management in IT Support
PERCEIVED
VALUE
HIGHER
LOWER
#1 Operational
Effectiveness
#2Brand
Management

Closing the Perception Gap
PERCEIVED
VALUE
HIGHER
LOWER
Closing
the
Perception
Gap
Where you Should Be
Where you Are

Brand Management: The Five W’s
1. Who – Who are the Key Stakeholder Groups?
2. What – What are the Key Messages?
3. When – When are You Going to Communicate Them?
4. Where/How – Where/How do You Reach the Stakeholders?
5. Why – Why are We Doing This?

Key Success Factors in Marketing IT Support
Messages
Timing
Timing
Frequent Contact
• New employee orientation
• At session log-in
• During training
• During the incident
• At scheduled sessions
Messages
Multiple Messages
• Services
• Major initiatives
• Performance Levels
• FAQ’s
• Success Stories
Channels
Use All Available
• Log-in messages
• Newsletters
• Reference Guides
• Asset tags
• Surveys
• User Liaisons
Timing

The Most Common Communication Vehicles
Where is IS failing to meet XXX needs?
Rank Fails Survey Question
1 - 22.1% 24. Availability of shared resources
2 - 16.2% 30. Your satisfaction with remote access services
3 - 14.7% 17. Continue using the IS Support Center
4 - 13.2% 28. Overall satisfaction with computing/network services
5 - 11.8% 21. The response to requested software changes
5 - 11.8% 29. Satisfaction with the current E-Mail services
7 - 10.3% 09. Current services provided by IS
8 - 8.8% 19. Developers understand your business requirements
9 - 8.8% 23. Reliability of business applications
10 - 7.4% 08. IS communication of products and services
10 - 7.4% 22. The response to requested enhancements
12 - 4.4% 07. IS value compared to the cost of services
12 - 4.4% 14. Value of IS Business Consultants
12 - 4.4% 20. Responsiveness to application maintenance requests
15 - 2.9% 12. Acquisition process for IT
15 - 2.9% 18. Applications provide the necessary functionality
12%
Avg.
2.9 % of XXX’s said issue18. failed to meet expectations.
Mean
for ALL
“fails”
Sort field
sequence
field
varriance
duplicate rank
Title of List
above
average
below
average
Selected Issues
Newsletters
Brown Bag
Sessions
Leave Behinds
Business Unit
Liaisons
Surveys Log-in Screens Webcasts FAQ Site

Messaging Summary
 Managing the gap between perception and reality is fairly
straightforward
 It doesn’t take a lot of time, or cost a lot of money
 But it is critically important
 The success of your support organization depends as much on your
image, as it does on your actual performance!
 The Benefits of effective Internal Marketing include:
 The Opportunity to convey your value proposition!
 Customer loyalty and positive word-of-mouth referrals
 Credibility, which leverages your ability to Get Things Done!
 A Positive Image for IT overall
 High levels of Customer Satisfaction

84%
47%
31% 29%
22%
19%
8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Service Desk Desktop
Support
Network
Outages
VPN Training Enterprise
Applications
Desktop
Software
Factors Contributing to IT Customer Satisfaction
%SayingVeryImportant
 n = 1,044
 Global large cap companies
 Survey type: multiple choice
 3 responses allowed per survey
 84% cited the service desk as a very important factor in their overall satisfaction with corporate IT
 47% cited desktop support as a very important factor in their overall satisfaction with corporate IT
Support Drives Customer Satisfaction for All of IT

Thank you for attending this session.
Don’t forget to complete an
evaluation form!

About MetricNet
Your Benchmarking Partner
57

Your Speaker: Jeff Rumburg
 Co Founder and Managing Partner,
MetricNet, LLC
 Winner of the 2014 Ron Muns
Lifetime Achievement Award
 Former CEO, The Verity Group
 Former Vice President, Gartner
 Founder of the Service Desk
Benchmarking Consortium
 Author of A Hands-On Guide to
Competitive Benchmarking
 Harvard MBA, Stanford MS
58

Benchmarking is MetricNet’s Core Business
Call Centers
Telecom
Information
Technology
Satisfaction
 Customer Service
 Technical Support
 Telemarketing/Telesales
 Collections
 Service Desk
 Desktop Support
 Field Support
 Price Benchmarking
 Employee Satisfaction

27 Years of IT Service and Support Benchmarking Data
More than 3,000 IT Service and Support Benchmarks
Global Database
70+ Key Performance Indicators
More than 120 Industry Best Practices

Meet a Sampling of Our Clients
MetricNet Conducts benchmarking for IT Service and Support
organizations worldwide, and across virtually every industry sector.

You Can Reach MetricNet…
By Phone…
703-992-7559
On Our Website…
www.metricnet.com
Or E-mail us…
info@metricnet.com

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